The New Benefits Package: What Employees Really Want in 2025

Employee expectations for benefits have evolved. With rising costs, the shift toward flexible work, and a more diverse workforce, the old one-size-fits-all benefits package no longer meets modern needs.

Today’s employees want more than just traditional perks—they seek financial security, work-life balance, and comprehensive health support. For HR leaders, this means rethinking benefits to create real value and improve employee well-being.

So, what should a forward-thinking benefits package look like in 2025? Let’s explore key trends and actionable steps to modernize your strategy.

The Changing Workforce: What’s Driving Benefits Preferences?

Understanding what employees prioritize is essential to offering meaningful benefits. Here are some emerging trends:

• Generational Differences: Gen Z values career development and mental health support. Millennials focus on work-life balance. Gen X prioritizes retirement security, while Baby Boomers lean toward comprehensive healthcare benefits.
• The Impact of Hybrid Work: Flexible schedules and remote work are no longer perks—they're expectations. A MarketWatch report shows 82% of Gen Z values schedule flexibility, and 83% want employers to support mental health.
• Rising Financial Stress: A PwC survey found 60% of full-time employees are stressed about money, affecting productivity and well-being. Employers are stepping up with financial wellness programs to reduce stress and improve retention.

What Do Employees Want Most in 2025?

1. Financial Wellness

Ted Benna, the “father of the 401(k),” once revolutionized retirement savings, but he now questions if a 401(k) is the best option for middle- and low-income earners. Instead, he emphasizes the importance of emergency savings and financial literacy.

• Emergency Savings Accounts (ESAs): Employees want immediate financial security. Studies show 60% prefer ESAs over retirement savings when facing unexpected expenses.
• Student Loan Assistance: With student debt remaining a major burden, repayment assistance is a game-changer.
• Financial Education: Budgeting workshops, digital tools, and personalized coaching empower employees to take control of their finances.

Why it matters: Financially secure employees are more productive, engaged, and less likely to leave for another job.

2. Health & Wellness

• Mental Health Support: Therapy coverage, telehealth access, and wellness apps are now standard expectations.
• Preventative Care Incentives: Reimbursements for fitness programs and mindfulness sessions improve overall well-being.
• Flexible Health Plans: Customizable options, including family planning and alternative treatment coverage, cater to diverse needs.

Why it matters: When employees feel supported in their health, they perform better and stay with their company longer.

3. Work-Life Balance

• Flexible Schedules: Remote and hybrid work options help employees manage their time effectively.
• Paid Leave: Generous PTO, parental leave, and caregiving support show employees they’re valued beyond their work output.
• Childcare & Eldercare Assistance: Dependable support for caregivers reduces stress and increases focus at work.

Why it matters: Work-life balance leads to greater job satisfaction, reducing turnover and hiring costs.

4. Career Development

• Upskilling & Reskilling: Offering courses in emerging fields keeps employees competitive and engaged.
• Leadership Development: Management training programs help employees prepare for future leadership roles.
• Tuition Reimbursement: Supporting further education builds long-term loyalty.

Why it matters: Investing in employees’ growth encourages them to invest in your company’s success.

How to Modernize Your Benefits Package

To stay competitive, HR leaders must align benefits with employee priorities. Here’s how:

• Survey Employees: Regular feedback ensures benefits match evolving needs.
• Use Technology: Benefits portals and apps make it easy for employees to enroll and track their perks.
• Offer Flexibility: Customizable benefits packages provide employees with the choices that work best for them.
• Partner with Trusted Vendors: Collaborate with providers to offer cost-effective financial wellness tools, ESAs, and telehealth services.

Budgeting for Modern Benefits

Maximizing resources while delivering impactful benefits requires strategic planning:

• Reallocate Funds: Shift resources from underused programs to high-demand benefits.
• Leverage Partnerships: Work with third-party vendors for cost-effective solutions.
• Offer Flexible Spending: Give employees control over how they allocate their benefits budget.

Example budget allocation:

• 40% for healthcare and wellness programs.
• 25% for financial wellness initiatives.
• 20% for PTO and work-life balance resources.
• 15% for career development and training.

Measuring Success

To ensure your benefits package delivers real value, track key metrics:

• Participation Rates: High engagement means benefits are relevant and effective.
• Employee Satisfaction: Regular surveys help refine offerings.
• Retention & Productivity: A strong benefits package should reduce turnover and enhance performance.
• Return on Investment (ROI): Monitor reductions in absenteeism, healthcare claims, and turnover costs.

The Future of Employee Benefits

Ted Benna’s insights remind us that financial wellness must evolve beyond the 401(k). Employees want benefits that provide security today—not just in retirement. By prioritizing financial wellness, work-life balance, and career development, HR leaders can create a benefits package that resonates across generations and strengthens retention.

The message is clear: Modern benefits aren’t just nice to have—they’re essential for attracting and keeping top talent. Now is the time to take action and build a future-ready benefits strategy.